- Daily chart shows price testing recent swing high.
- Most importantly Month candle is trying to move above 200 SMA. Crucial thing here is, Bulls need a good move away from 200 SMA otherwise price may fall back below the moving average line which will be very negative for crude bulls.
- ES bulls is doing a bullish engulfing from 200 Day SMA. Considering the place it has occurred this has to be treated as a strong signal. But as always candlestick patterns does need confirmation.
- Hourly chart shows price running into the cloud. More bullish signs if price manages to move above the hourly cloud. Bears hoping that price will find resistance at the cloud.
- Bounce in hour chart continues to be strong
- Price near one hour cloud and 50 Hour SMA. Throughout this down move bulls struggle near the cloud. So for this bounce to be reflected in Daily time frame, Price has to break above the hourly cloud.
- Bears trying to make a comeback. They have to deal with 200 SMA first. Bigger bounce possible only if price is able make it back above 200 SMA
- Immediate resistance levels and cloud shown in one hour time frame for tomorrow.
- Price closed the week at the lows. Price broke crucial support zone of 175.
- Daily time frame is also staying well below 200 SMA.
- Daily is likely to give the death cross soon with 50 SMA moving below 200 SMA.
- Any bounce towards these moving averages are likely to face stiff resistance from bears.
- Hourly bearish momentum will stay intact below ichimoku cloud.
- Gold had a bearish descending triangle and a Rounding top pattern. Both were bearish patterns but Gold decided to move in favour of bulls.
- But this up move may find resistance both in Daily and weekly time frame. Resistance in daily is around 1365 and Week shows possible move up to 1377 levels. Bigger moves only if these levels are crossed on closing basis.
- First chart is the hope of bulls to replicate the recent visit of price below 200 SMA. As one can see price did not do much below 200 SMA for bears.
- But bulls will understand the Gravity of the situation when they see the second chart. From 2008 there has been 3 sell signals in Month MACD, We are about to witness the 4th sell signal. All the previous signals gave great results for bears.
- But as always in stock market nothing is certain, Let the 4th signal fail to save small long term investors from big losses....
